APPLIED MATHEMATICS II (ECO 244) Sample Mid I North South University

Name and ID: Total Marks: 25

The following are MCQs:

Question 1:

a d
bc
x

From the above graph we may conclude:

1) 𝑓 ′ 𝑎 is

a) is less than 𝑓 ′ 𝑏 b) is equal to 𝑓′(𝑐) c) is equal to zero d) all of them

2) 𝑓′(𝑏) is

a) less than 𝑓′(𝑑) b) equal to 𝑓′(d) c) greater than 𝑓′(𝑑) d) all of them

3) 𝑓′′(𝑏) is

a) less than zero c) equal to zero d) greater than zero d) all of them

Question 2:

I) If, 𝑓 ′ 3 = 0 then at 3 there may be a:

a) minimum b) horizontal line c) maximum d) either a, b or c

II) If, 𝑓 ′ 3 > 0 then we may conclude:

a) the graph is downward sloping at 3 b) the graph is horizontal at 3

c) the graph is upward sloping at 3 d) either a, b or c

III) If, 𝑓 ′′ 5 > 0 then we may conclude:

a) 𝑓 ′ 5.01 < 𝑓 ′ (5) b) 𝑓 ′ 5.01 = 𝑓 ′ (5.0) c) 𝑓 ′ 5.01 > 𝑓 ′ (5.0) d) either a, b, or c

APPLIED MATHEMATICS II (ECO 244) Sample Mid I North South University

Name and ID: Total Marks: 25

Question 3:
Given, 𝑦 = 𝑓 𝑢, 𝑣 = 5 + 𝑢 + 3𝑢3 𝑣 4 + 𝑣. Find all the first, second and cross partial derivatives of the
given function.

Question 5:
A business firm makes two products: A and B. The following is the profit function of the business firm:

𝜋 = 𝑓 𝑄𝐴 , 𝑄𝐵 = 160𝑄𝐴 − 3𝑄𝐴2 − 2𝑄𝐴 𝑄𝐵 − 2𝑄𝐵2 + 120𝑄𝐵 − 18

How many units of A and B should be produced to maximize the profit of the business firm? Verify
(check) that the maximum profit occurs at these quantities. What is the maximum profit that the
business firm can make from producing and selling products A and B?

Question 6:
A business firm makes two products A and B. The total capacity of the business firm is 20 units and their
total output must equal this capacity i.e. 𝑄𝐴 + 𝑄𝐵 = 20

The total cost function (𝐶) of the firm is: 𝐶 = 2𝑄𝐴2 + 3𝑄𝐵2

Using the Lagrange Function, find the amount of A and B that should be produced to minimize the total
cost of the business firm? Verify and check (using the Bordered Hessian Method) that the minimum cost
occurs at this amount of A and B? What is the minimum cost?

How might the information you obtained above be useful for a business that wants to maximize profit?

(End of Sample Mid I)

The following are Extra Questions (For Practice):

Question 4:
A business firm makes only one product: A. The following is the profit function of the business
organization: 𝜋 = −𝑄𝐴2 − 10𝑄𝐴 + 1025. What amount of A should be produced to maximize profit?
Check and verify that it is the maximum profit. What is the maximum profit that the business firm can
make?
APPLIED MATHEMATICS II (ECO 244) Sample Mid I North South University

Name and ID: Total Marks: 25

Question 7:

A business firm which produces only one product has a contract to produce 500 units of the product for
a client.

Given: the production function of the business, 𝑄 = 20𝐾 0.5 𝐿0.5 (where 𝐾 and 𝐿 represents the number
of machines and workers used by in the production process) and the cost per machine = 20 and the cost
per worker = 15.

a) What should be the aim or objective of the business firm in the given situation?

b) Use the Lagrangian Multiplier Method to find how the business may achieve their aim or objective
you stated above.

c) What amount should they charge their client for producing these 500 units.